Khosla Calls for Rethinking Capitalism Amid AI Disruption

Venture capitalist says AI will transform economies, force changes to taxes and wealth distribution

Published on Feb. 18, 2026

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Vinod Khosla, the founder of Khosla Ventures, believes that the rise of artificial intelligence will fundamentally disrupt traditional capitalism, causing a sharp decline in the labor share of the economy. To address this, Khosla has proposed a series of aggressive redistribution ideas, including leveling capital gains rates with ordinary income, implementing a universal basic income, and having the government take a 10% equity stake in every public company to build a national wealth fund.

Why it matters

Khosla's views highlight the growing concerns among experts that the widespread adoption of AI technology could lead to significant job losses and wealth inequality. As AI automates more tasks and reduces the value of human labor, policymakers will need to rethink how to tax and distribute the gains from this technological shift.

The details

In a post on X, Khosla wrote that "AI will transform economies and need a rethink of capitalism & equity," warning that the labor share of the economy will "decline sharply." He suggested leveling capital gains rates with ordinary income, noting that people earning more than $10 million a year currently pay about 40% of the capital gains tax. Khosla also pushed for a universal basic income as a floor for citizens in an AI-heavy economy, and at TechCrunch Disrupt 2025, he proposed that the government take a 10% equity stake in every public company to build a national wealth fund that would share AI gains with the public.

  • On Monday, Khosla published a post on X outlining his views on the impact of AI on the economy.
  • At TechCrunch Disrupt 2025, Khosla expanded on his proposal for the government to take a 10% equity stake in public companies.

The players

Vinod Khosla

The founder of Khosla Ventures and an early backer of OpenAI, Khosla has been a vocal proponent of rethinking capitalism and wealth distribution in the face of AI disruption.

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What they’re saying

“AI will transform economies and need a rethink of capitalism & equity”

— Vinod Khosla, Founder, Khosla Ventures (X)

The takeaway

Khosla's proposals, such as leveling capital gains rates and creating a national wealth fund, highlight the growing recognition that the rise of AI will require a fundamental rethinking of economic systems and wealth distribution to address the potential for widespread job losses and inequality.